Market Link Guide - Colombia
CSD link as defined under CSDRa
Type of link
a. CSD Regulation (EU) No 909/2014 art. 2 (29)
Deceval S.A. for domestic equities, government bonds and corporate bonds.
Depósito Central de Valores (DCV) for government bonds only.
BNP Paribas Securities Services Sociedad Fiduciaria S.A.
Deceval S.A. : C1LSWA.99999.SL.170
DCV - Depósito Central de Valores del Banco de la República. Banco de la Republica is part of the Central Bank of Colombia and is not a legal independent entity. The Central Bank does not have a GIIN registered.
CSD-Deceval LEI: 254900VMUX4V1CPO9456
CSD-DCV - Depósito Central de Valores del Banco de la República. Banco de la Republica is part of the Central Bank of Colombia, Banco de la República. The Central Bank LEI is 549300Q08P3G7KZVGB68
BNP Paribas Securities Services SCA - parent company
Country of incorporation
Segregated accounts at beneficiary level
|Segregated accounts at beneficiary level|
(For more information, please refer to Local Investor Account Requirements - Colombia.)
Legal Account name/ holder
BPSS as the participant in Deceval and DCV hold individually segregated account for CBL customers/underlying beneficiaries based on TIN (Tax ID)
BPSS Sociedad Fiduciaria S.A on behalf of Third Parties – (Foreign)
Settlement free of payment
Internal (CBL-CBL) transfers between customer accounts are not allowed in the Colombian market. FOP only possible in specific cases (see settlement services)
Settlement against payment
Internal (CBL-CBL) transfers between customers’ accounts are not allowed in the Colombian market
Eligible settlement currency: Colombian Peso (COP).
Settlement in COP. Customers shall cover their account prior to settlement. No clean payments are permitted in COP except COP transfers exclusively linked to securities activities.
Settlement against payment in central bank money account of CBL/CBL customers
CBL holds a cash account at the custodian. Against payment settlement takes place on BNP Paribas Securities Services Sociedad Fiduciaria S.A.
Settlement penalty fees
Instructions can be cancelled unilaterally any time before settlement takes place.
Back-to-back processing does not exist in the market; however, same day turnaround via linked instructions is possible.
At beneficial owner level on the basis of the TIN (Tax ID).
Multi Market Securities
Lending and borrowing
Split voting not permitted
Liquidity Hub Connect
Sale and purchase of rights
No clean payments are permitted in COP except for COP transfers linked to securities activities.
Capital Gain Tax
First in, First Out “FIFO” Method
Moment of entry of instructions
The moment of entry is when the trade is entered/recorded into the CSD system and a trade number is generated; then it is approved for further settlement.
Irrevocability of instructions
Matched instructions are binding and cannot be unilaterally cancelled.
Finality of instructions
Settlement in Colombia is considered final and irrevocable as from the time the instruction is settled in the CSD systems.(governed by Law 964 of 2005 article n.10).
The below section is based on the legal opinion obtained by CBL that was issued on 27 November 2018. The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.
No insolvency proceedings against the custodian
Custodian’s liability for negligence
Book-entry regime with in rem rights
Recognition of nominee concept
The laws of Colombia do not recognise ownership exercised through a nominee company nor beneficial ownership. The beneficial ownership of the securities credited to the accounts will at all times be vested in the account holders, that is the customers
No right of retention for the custodian
Segregation of assets at the custodian
No right of use
No upper-tier attachments
Insolvency of the custodian with no impact on CBL's rights
Shortfall pro-rated among holders
Not available. Under the laws of Colombia, customer accounts held at the custodian are individually segregated and the custodian has no right of use
Settlement finality in case of insolvency
Record keeping period of at least ten years